The Decision to Import
|
|
- Tracey Atkinson
- 6 years ago
- Views:
Transcription
1 March 2010 The Decision to Import Mark J. Gibson Washington State University Tim A. Graciano Washington State University ABSTRACT Why do some producers choose to use imported intermediate inputs while others do not? The decision matters for plant performance. In the data, plants that import are much larger and more productive than non-importers. This finding is robust to many statistical controls. Yet only a small fraction of plants choose to import. To try to account for these facts, we develop a simple model of an industry with heterogeneous firms. Each firm has a choice of two technologies: one uses only domestic inputs, while the other uses both domestic and imported inputs. The importer technology involves a fixed cost but offers increased efficiency of production. As a result, only the most efficient firms choose to import, and the fraction of firms that import increases with improvements in the terms of trade. Calibrated to recent data on Chilean manufacturing plants, the model successfully captures the large size difference between importers and non-importers. We thank Terry Roe for helpful discussion. We also thank Chile s Instituto Nacional de Estadísticas for data and Ana Espínola for assistance with the data. The WSU Foundation provided financial support. Correspondence: School of Economic Sciences, Washington State University, Pullman, WA, ; mjgibson@wsu.edu, graciata@wsu.edu.
2 If producers that used imported intermediate inputs appeared no different from those that did not, then we might reasonably conclude that the decision to import was of little consequence for the organization of production in an economy. But this is not the case. Importers differ sharply from non-importers. We document that, in recent surveys of Chilean manufacturing plants, plants that use imported raw materials are much larger and more productive than plants that do not. These findings are robust to a number of different statistical controls. Despite the large performance advantage associated with using imported inputs, only a small fraction of plants do. Our interpretation of the data is that producers would prefer to use some imported inputs in production perhaps because they are easier to process, are of higher quality, or offer some other productivity advantage but that most do not because of barriers to international trade that take the form of fixed costs. We interpret these fixed costs as the costs of developing trade relationships with foreign input suppliers. It is only worthwhile for the largest, most efficient, and most profitable firms to invest in these trade relationships. To formalize this story, we develop a simple model of an industry in which firms endogenously decide whether or not to use imported inputs. Our model has three main features. First, there is a continuum of heterogeneous firms that take efficiency draws from a probability distribution (along the lines of Hopenhayn (1992)). Second, after obtaining an efficiency draw, each firm has an endogenous choice of two technologies: a technology that uses only domestic inputs and a technology that uses both domestic and imported inputs. Third, adopting the technology that uses imported inputs requires payment of a fixed cost. In the model, firms endogenously sort themselves into importers and nonimporters. Due to the barrier created by the fixed cost of importing, only the plants with the highest efficiency draws become importers. These are also the largest plants. Quantitatively, we show that for plausible parameters the model can replicate the observed difference in size between importers and non-importers. 1
3 The importing behavior of plants has not yet been widely studied, but there is a growing literature. Using Colombian data, Kugler and Verhooven (2009) find evidence that plants import to obtain higher-quality inputs. Using Chilean data, Kasahara and Rodrigue (2008) find that switching from being a non-importer to being an importer can increase a plant s productivity. Amiti and Konings (2007), examining data from Indonesia, find that lowering tariffs on imported inputs can raise plant productivity through learning, variety, and quality effects. Halpern, Koren, and Szeidl (2005) find, analyzing Hungarian data, that imported inputs increase plant productivity through complementarity and quality channels. Our findings on the differences between importers and non-importers are similar to findings on the differences between exporters and non-exporters. For instance, Bernard and Jensen (1999), Bernard et al. (2003), and Bernard, Jensen, and Schott (2005) have documented differences between exporters and non-exporters for the United States. These findings have led to a large literature on the decision to export. Roberts and Tybout (1997) made a seminal contribution to the empirical literature on this topic, as did Melitz (2003) to the theoretical literature. Both papers emphasize fixed costs of exporting. A similarly large literature has not yet developed with respect to the decision to import. We aim to remedy this and view our work as complementary to that on the decision to export. While exporting and importing decisions may be related, we believe that the underlying considerations by firms are fundamentally different. The decision to export has to do with the demand characteristics of the foreign market, whereas the decision to use imported inputs has to do with the production process at the plant level. Data We use the annual census of manufacturing plants conducted by Chile s Instituto Nacional de Estadísticas during the period 2001 to Previous editions of the survey have been examined by Liu (1993), Levinsohn (1999), and Pavcnik (2002), among others. The data on imported inputs are limited in this survey: we only observe the extent 2
4 to which plants use imported raw materials. As a result, we cannot analyze the effects of, for instance, imported capital equipment, which may be of greater importance. Nevertheless, the differences between importers and non-importers are striking. The Chilean census involves a total of 8,014 different manufacturing plants over the period 2001 to Since our interest is in comparing importers and non-importers, we omit from our analysis the 1,078 plants that changed their import status during the period (see Kasahara and Rodrigue (2008) for an analysis of these types of plants). We categorize the remaining plants as follows. Importers are plants that used imported raw materials every year that they appeared in the census during the period; they are 13 percent of our sample. Non-importers are plants that did not use imported raw materials in any year that they appeared in the census during the period; they are 87 percent of our sample. Comparing Importers and Non-Importers We compare plant averages between importers and non-importers over the period 2001 to All monetary values are in terms of an inflation-adjusted unit of account, the Chilean Unidad de Fomento. Our findings are summarized in table 1. The table shows that, on average, importers are much larger than non-importers, whether measured by gross output, total materials used, value added, or employment. Importers are also more productive than non-importers. On average, importers have about 30 percent higher value added per worker. Even within industries that process relatively homogeneous goods, such as agricultural goods, the differences between importers and non-importers are stark. Of the 20 industries at the two-digit ISIC level in our data, the following 5 are likely involved in processing agricultural goods: manufacture of food products and beverages, manufacture of textiles, tanning and dressing of leather, manufacture of wood and wood products, and manufacture of paper and paper products. In table 2, for each of these industries we report the share of plants that use imported raw materials and the extent to which importers differ from non-importers in gross output and value added per worker. The 3
5 differences in size and productivity between importers and non-importers tend to be more pronounced in these industries than in the manufacturing sector as a whole. Statistically Controlling for Other Plant Characteristics To further test the robustness of our findings on the differences between importers and non-importers, we consider the extent to which these differences may be statistically accounted for by other plant characteristics. We control for the following: the region in which a plant is located (Chile has 13 regions), the industry to which a plant belongs (the data cover 20 manufacturing industries at the two-digit ISIC level), whether or not a plant exports, the capital intensity of a plant (measured as total assets per worker and sorted into deciles), and whether or not there is any foreign ownership of a plant. Specifically, we perform the following semi-logarithmic regression: logy = α + βimporter + X δ + ε, (1) i i i i where Y i is the dependent variable for plant i, Importer i is a dummy variable for whether or not plant i uses imported raw materials, X i is a vector of control dummy variables for plant i consisting of the characteristics listed above, and ε i is an error term. We assume that ε i satisfies the usual properties. The coefficients to be estimated are α, β, and δ. Table 3 reports the estimated value of the coefficient β for the following dependent variables: gross output, total materials, employment, assets, assets per worker, value added, and value added per worker. All differences between importers and nonimporters are statistically significant at the one-percent level. Model We model an industry that consists of measure one of single-plant firms. The industry produces a homogeneous good, the price of which is normalized to one. The industry has access to two different inputs to production: a domestic input and a foreign input. The industry takes the prices of these inputs as given. There are no equilibrium price effects in the model so that the focus is on the decisions of firms. 4
6 Technologies Each firm takes an efficiency draw from a probability distribution G(). Each firm then has a choice of two technologies: the first technology uses only domestic inputs, while the second technology requires both domestic and foreign inputs. The technologies available to a firm with efficiency draw a take simple functional forms. The first technology, technology N for non-importer, uses only domestic inputs. For a firm with draw a, technology N is given by y ( a) = ad ( a) ν, (2) N where yn ( a ) is the quantity of output, dn ( a ) is the quantity of the domestic input, and 0< ν < 1. The profits of a firm with draw a using technology N are N π ( a) = y ( a) pd ( a), (3) N N d N where p d is the price of the domestic input. Profit maximization implies that 1 1 ν ν ( ) a dn a = pd. (4) The second technology, technology I for importer, uses both domestic and foreign inputs. For a firm with draw a, technology I is given by ρ ρ ( ) / y ( a) = aη µ d ( a) + (1 µ ) f ( a), (5) I I I where yi ( a ) is the quantity of output, di ( a ) is the quantity of the domestic input, fi ( a ) is the quantity of the foreign input, η > 0, 0< µ < 1, and ρ < 1. The firm s elasticity of substitution between domestic and foreign inputs is 1 / (1 ρ). The parameter η determines the total factor productivity of technology I relative to technology N. Operating technology I requires a fixed cost of φ units of output, so the profits of a firm with draw a using technology I are π ( a) = y ( a) p d ( a) p f ( a) φ, (6) I I d I f I ν ρ where p f is the price of the foreign input. Profit maximization implies that 5
7 1 ν ρ 1 1 ρ 1 ρ 1 ρ ρ(1 ν) µ 1 ν 1 ρ 1 ρ 1 ρ 1 ρ I( ) = ( ην ) µ d + (1 µ ) f p d d a a p p (7) 1 ν ρ ρ 1 ρ ρ ρ(1 ν) 1 µ 1 ν 1 ρ 1 ρ 1 ρ 1 ρ I( ) = ( ην ) µ d + (1 µ ) f p f f a a p p. (8) Cutoff for Importing A firm with efficiency draw a chooses which technology to use according to the maximum of π ( a ) and π ( a ). Consistent with the data, we focus on the case where N I parameter values are such that both technologies are used in the industry. In this case, there is an efficiency cutoff for using technology I. A firm with draw a uses technology I if a a and uses technology N if a< a, where a solves In terms of parameters, the cutoff for importing is a = 1 ν φ ν ν η µ µ π ( a) = π ( a). (9) N ν(1 ρ) 1 1 ρ 1 ρ ρ(1 ν) ν ν 1 ν 1 ν 1 ρ 1 ρ 1 ρ 1 ρ 1 ν (1 ) pd + (1 ) pf pd This cutoff is increasing in φ and I p f and decreasing in η and 1 ν. (10) p d. If a decreases, then firms that were not previously importing switch technologies and start using imported inputs. The model captures, in a simple way, the technology switching that can occur in response to persistent changes in the trade environment. In contrast to models with a representative firm, our model has both an intensive margin and an extensive margin of importing. The intensive margin captures changes in the use of the foreign input by firms that were previously importing. The extensive margin captures changes in the share of firms that import. With regard to exports, Ruhl (2004) and Chaney (2008) find that allowing for an extensive margin is important in accounting for changes following trade liberalization. 6
8 Quantitative Analysis of the Model We calibrate our model to match important facts about the Chilean manufacturing sector. Then we determine the extent to which the model can account for the observed size differences between importers and non-importers. Calibration We begin by specifying the probability distribution for the efficiency draws. Figure 1 shows the distribution of plants by gross output. The result is suggestive of a Pareto distribution. Moreover, the Pareto distribution is used in many other studies involving trade and heterogeneous firms (see, for example, Chaney (2008)). Consistent with this, we suppose that each firm s efficiency is drawn from a Pareto distribution with cumulative distribution function Ga ( ) = 1 a γ, for a 1, where the lower bound of one is a normalization and γ > 2 / (1 ν). The restriction on γ ensures that the variance of output in the model is finite. Table 4 summarizes the calibration. We normalize units so that all of the prices in the model are initially equal to one. This leaves us with six parameters: ρ, ν, µ, φ, η, and γ. Following Ruhl (2004), we set ρ = 0.5 to give an elasticity of substitution of 2. Following Atkeson and Kehoe (2005), we set ν = We set µ = 0.68 so that expenditure on imported inputs is 15 percent of importers gross output. We choose the values of φ, η, and γ jointly to match two facts: (i) importers are 13 percent of plants and (ii) the coefficient of variation for gross output of plants is 7.3. These two facts do not uniquely pin down the values of φ, η, and γ. This is because a higher value of φ may be offset by a higher value of η. As a result, we include sensitivity analysis in table 5. 7
9 Results To what extent can the model account for the observed size differences between importers and non-importers? As table 5 shows, the model matches the data if we set φ = 0.031, η = 1.66, and γ = For the cutoff firm, the fixed cost of importing is then equal to 2 percent of gross output and 19 percent of variable profits. We view these magnitudes as plausible. For sensitivity analysis, we also report the results for lower and higher values of φ, η, and γ. Conclusion In contrast to the decision to export, the decision to import has not yet been widely studied. We document the performance advantage associated with using imported inputs and offer a simple theoretical mechanism that can quantitatively account for this. Our results suggest that the importing behavior of plants is a fruitful area for future research, though more data analysis is needed. The simple model presented here may serve as a point of departure for other researchers. The roles of dynamics and uncertainty are natural extensions of the model. Further applications may include quantitative modeling of terms-of-trade shocks and trade liberalizations. The ultimate goal is to develop a model of trade that can quantitatively account for both the export and import decisions of firms. The challenge is to maintain transparency while doing so. 8
10 References Amiti, M., and J. Konings Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia. American Economic Review 97: Atkeson, A., and P. J. Kehoe Modeling and Measuring Organization Capital. Journal of Political Economy 113: Bernard, A. B., J. Eaton, J. B. Jensen, and S. Kortum Plants and Productivity in International Trade. American Economic Review 93: Bernard, A. B., and J. B. Jensen Exceptional Exporter Performance: Cause, Effect, or Both? Journal of International Economics 47:1-25. Bernard, A. B., J. B. Jensen, and P. K. Schott Importers, Exporters, and Multinationals: A Portrait of Firms in the U.S. that Trade Goods. NBER Working Paper No Chaney, T Distorted Gravity: The Intensive and Extensive Margins of International Trade. American Economic Review 98: Halpern, L., M. Koren, and A. Szeidl Imports and Productivity. CEPR Discussion Paper No Hopenhayn, H. A Entry, Exit, and Firm Dynamics in Long Run Equilibrium. Econometrica 60: Kasahara, H., and J. Rodrigue Does the Use of Imported Intermediates Increase Productivity? Plant-Level Evidence. Journal of Development Economics 87: Kugler, M., and E. Verhoogen Plants and Imported Inputs: New Facts and an Interpretation. American Economic Review Papers and Proceedings 99: Levinsohn, J Employment Responses to International Liberalization in Chile. Journal of International Economics 47: Liu, L Entry-Exit, Learning, and Productivity Change: Evidence from Chile. Journal of Development Economics 42:
11 Melitz, M. J The Impact of Trade on Intra-Industry Reallocation and Aggregate Industry Productivity. Econometrica 71: Pavcnik, N Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants. Review of Economic Studies 69: Roberts, M. J., and J. R. Tybout The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs. American Economic Review 87: Ruhl, K. J The International Elasticity Puzzle. Unpublished, New York University. 10
12 Statistic Ratio of average importer to average non-importer Gross output 4.5 Total materials 4.4 Employment 4.0 Assets 7.5 Assets per worker 2.1 Value added 5.2 Value added per worker 1.3 Table 1. Importer Premia 11
13 Industry Ratio of average importer to average nonimporter Importers as a percent of all plants Gross output Value added per worker Manufacture of food products and beverages Manufacture of textiles Tanning and dressing of leather Manufacture of wood and wood products Manufacture of paper and paper products All industries Table 2. Importer Premia in Industries that Process Agricultural Goods 12
14 Y i ˆβ Gross output 1.45*** (0.030) Total materials 1.55*** (0.033) Employment 0.92*** (0.023) Assets 1.93*** (0.047) Assets per worker 1.05*** (0.038) Value added 1.37*** (0.032) Value added per worker 0.44*** (0.022) Robust standard errors in parentheses; *** significant at 1%. Table 3. Robustness Checks on Importer Premia 13
15 Parameter(s) Value(s) Explanation p d, p 1, 1 Normalization of units f ρ 0.5 Ruhl (2004) ν 0.85 Atkeson and Kehoe (2005) µ 0.68 Chosen to match the fact that expenditure on imported inputs is 15% of importers gross output φ, η, γ See table 5 Chosen jointly to match 2 facts: (i) importers are 13% of plants and (ii) the coefficient of variation for gross output is 7.3 Table 4. Calibration 14
16 Parameter values Relative size of fixed cost for cutoff plant Ratio of average importer s gross output to average non-importer s φ η γ As a As a Model Data percent of percent of gross variable output profits Table 5. Model vs. Data 15
17 Figure 1. Distribution of plants by gross output 16
Innovation and the Elasticity of Trade Volumes to Tariff Reductions
Innovation and the Elasticity of Trade Volumes to Tariff Reductions Loris Rubini Arizona State University May 11, 2010 Motivation What are the effects of tariff reductions on trade volumes and productivity?
More informationHow and Why Does Trade Grow?
How and Why Does Trade Grow? Timothy J. Kehoe University of Minnesota and Federal Reserve Bank of Minneapolis Instituto Autónomo Tecnológico de México April 2007 www.econ.umn.edu/~tkehoe Outline: 1. Much
More informationExchange Rate Pass-through, Firm Heterogeneity and Product Quality: A Theoretical Analysis *
Federal Reserve Bank of Dallas Globalization and Monetary Policy Institute Working Paper No. 141 http://www.dallasfed.org/assets/documents/institute/wpapers/2013/0141.pdf Exchange Rate Pass-through, Firm
More information(Indirect) Input Linkages
(Indirect) Input Linkages Marcela Eslava, Ana Cecília Fieler, and Daniel Yi Xu December, 2014 Advanced manufacturing firms differ from backward firms in various aspects. They adopt better management practices,
More informationProducts and Productivity
Products and Productivity Andrew B. Bernard Tuck School of Business at Dartmouth and NBER Stephen J. Redding London School of Economics and CEPR Peter K. Schott Yale School of Management and NBER December,
More informationeconstor Make Your Publications Visible.
econstor Make Your Publications Visible. A Service of Wirtschaft Centre zbwleibniz-informationszentrum Economics Kasahara, Hiroyuki; Lapham, Beverly Working Paper Productivity and the decision to import
More informationPer-capita Income, Taste for Quality, and Exports across Countries
Per-capita Income, Taste for Quality, and Exports across Countries Nan Xu This Draft: October 2016 Abstract This paper studies how per-capita income affects trade patterns of quality-differentiated goods
More informationVertical FDI and Global Sourcing Strategies of Multinational Firms
Vertical FDI and Global Sourcing Strategies of Multinational Firms Anna Ignatenko EARLY DRAFT July 28, 2017 Abstract In this paper I study global organization of production by multinational firms along
More informationTechnological Change, Trade in Intermediates and the Joint Impact on Productivity
Technological Change, Trade in Intermediates and the Joint Impact on Productivity Esther Ann Bøler Andreas Moxnes Karen Helene Ulltveit-Moe June 2012 Abstract This paper examines the interdependence between
More informationExporting markups. Joakim Gullstrand Karin Olofsdotter. Department of Economics, Lund University. Lund University School of Economics and Management
Exporting markups Joakim Gullstrand Karin Olofsdotter Department of Economics, Lund University Background and motivation Some recent studies explain variations in firms export prices by recognizing exporting
More informationImported Inputs, Quality Complementarity, and Skill Demand
Imported Inputs, Quality Complementarity, and Skill Demand Diego Saravia Central Bank of Chile Nico Voigtländer UCLA and NBER Preliminary draft comments welcome First version: March 26, 2012 This version:
More informationLecture 6: Empirics, the Extensive Margin and Firm Level Heterogeneity in Productivity
Lecture 6: Empirics, the Extensive Margin and Firm Level Heterogeneity in Productivity Instructor: Thomas Chaney Econ 357 - International Trade (Ph.D.) Introduction We have seen in the previous lectures
More informationETSG 2015 PARIS 17th Annual Conference, September 2015 Université Paris 1 Panthéon Sorbonne
ETSG 2015 PARIS 17th Annual Conference, 10 12 September 2015 Université Paris 1 Panthéon Sorbonne Institutional quality and contract complexity: the effects on the intensive and extensive margins of trade
More informationTrade Liberalization and Inequality: a Dynamic Model with Firm and Worker Heterogeneity
Trade Liberalization and Inequality: a Dynamic Model with Firm and Worker Heterogeneity Matthieu Bellon IMF November 30, 2016 Matthieu Bellon (IMF) Trade Liberalization and Inequality 1 / 22 Motivation
More informationEconomies of Scale and the Size of Exporters
Economies of Scale and the Size of Exporters Roc Armenter Federal Reserve Bank of Philadelphia Miklós Koren Central European University, IEHAS and CEPR December 1, 2008 Abstract Exporters are fewless than
More informationFirm Performance in a Global Market
Firm Performance in a Global Market Jan De Loecker and Pinelopi Koujianou Goldberg Princeton University and Yale University CEPR and NBER The Annual Review of Economics October 23, 2013 Abstract In this
More informationCompetition and Welfare Gains from Trade: A Quantitative Analysis of China Between 1995 and 2004
Competition and Welfare Gains from Trade: A Quantitative Analysis of China Between 1995 and 2004 Wen-Tai Hsu Yi Lu Guiying Laura Wu SMU NUS NTU At NUS January 15, 2016 Hsu (SMU), Lu (NUS), and Wu (NTU)
More informationR&D Investment, Exporting, and Productivity Dynamics
R&D Investment, Exporting, and Productivity Dynamics Bee Yan Aw The Pennsylvania State University Mark J. Roberts The Pennsylvania State University and NBER January 15, 2009 Daniel Yi Xu New York University
More informationPaper presented at the Trade Conference, Research Department Hosted by the International Monetary Fund Washington, DC April 6, 2007
GLOBAL IMPLICATIONS OF CHINA S TRADE, INVESTMENT AND GROWTH CONFERENCE RESEARCH DEPARTMENT FRIDAY, APRIL 6, 2007 AN ANATOMY OF CHINA S EXPORT GROWTH Mary Amiti Federal Reserve Bank of New York and CEPR
More informationImperfect competition, productivity differences and proximity-concentration trade-offs
Ekonomia nr 40/2015 7 Imperfect competition, productivity differences and proximity-concentration trade-offs Andrzej Cieślik * Abstract In this paper we study how productivity differences between foreign
More informationNBER WORKING PAPER SERIES EXPORTER DYNAMICS, FIRM SIZE AND GROWTH, AND PARTIAL YEAR EFFECTS
NBER WORKING PAPER SERIES EXPORTER DYNAMICS, FIRM SIZE AND GROWTH, AND PARTIAL YEAR EFFECTS Andrew B. Bernard Renzo Massari Jose-Daniel Reyes Daria Taglioni Working Paper 19865 http://www.nber.org/papers/w19865
More informationCompetition, Markups, and the Gains from International Trade
American Economic Review 2015, 105(10): 3183 3221 http://dx.doi.org/10.1257/aer.20120549 Competition, Markups, and the Gains from International Trade By Chris Edmond, Virgiliu Midrigan, and Daniel Yi Xu*
More informationA Note on the Impact of Economic Reforms on the Performance of the Agriculture Sector in Latin America Daniel Lederman * Rodrigo Reis Soares **
A Note on the Impact of Economic Reforms on the Performance of the Agriculture Sector in Latin America Daniel Lederman * Rodrigo Reis Soares ** Introduction Economic reforms in Latin America have been
More informationDISCUSSION PAPER SERIES. No TECHNOLOGICAL CHANGE, TRADE IN INTERMEDIATES AND THE JOINT IMPACT ON PRODUCTIVITY
DISCUSSION PAPER SERIES No. 8884 TECHNOLOGICAL CHANGE, TRADE IN INTERMEDIATES AND THE JOINT IMPACT ON PRODUCTIVITY Esther Ann Bøler, Andreas Moxnes and Karen-Helene Ulltveit-Moe INTERNATIONAL TRADE AND
More informationNBER WORKING PAPER SERIES TRADE, FDI, AND THE ORGANIZATION OF FIRMS. Elhanan Helpman. Working Paper
NBER WORKING PAPER SERIES TRADE, FDI, AND THE ORGANIZATION OF FIRMS Elhanan Helpman Working Paper 12091 http://www.nber.org/papers/w12091 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue
More informationUnequal Effects of Trade on Workers with Different Abilities
Unequal Effects of Trade on Workers with Different Abilities Elhanan Helpman Harvard University and CIFAR Oleg Itskhoki Princeton University Stephen Redding London School of Economics August 1, 2009 Abstract
More informationDeterminants and Evidence of Export Patterns by Belgian Firms
Determinants and Evidence of Export Patterns by Belgian Firms Jan Van Hove, Sophie Soete and Zuzanna Studnicka University of Leuven Document Identifier D5.10 Case Study on Belgian business succession practices
More informationThe Internationalization Process of Firms: from Exports to FDI?
The Internationalization Process of Firms: from Exports to FDI? Paola Conconi Université Libre de Bruxelles (ECARES) and CEPR André Sapir Université Libre de Bruxelles (ECARES) and CEPR Maurizio Zanardi
More informationProduct Churning, Reallocation, and Chinese Export Growth
Product Churning, Reallocation, and Chinese Export Growth Zhongzhong Hu Joel Rodrigue Yong Tan Chunhai Yu Dept. of International Economics and Trade, Nanjing University, Nanjing, China; Dept. of Economics,
More informationAssortative Matching of Exporters and Importers: Evidence From a Large Trade Liberalization Episode
Assortative Matching of Exporters and Importers: Evidence From a Large Trade Liberalization Episode Yoichi Sugita Kensuke Teshima Enrique Seira Preliminary Abstract: This Version: May 2014. First Version:
More informationAssortative Matching of Exporters and Importers
Assortative Matching of Exporters and Importers Yoichi Sugita SSE Kensuke Teshima ITAM Preliminary Enrique Seira ITAM This Version: February 2014 First Version: November 2013 Abstract: This paper examines
More informationProductivity Differences Between and Within Firms
Productivity Differences Between and Within Firms Rahul Giri Kensuke Teshima First Version: June. 2013 Preliminary Abstract We document how plants belonging to the same firm are heterogenous in their characteristics
More informationThe Changing Demand for Human Capital at China s New Stage of Development. by Cai Fang and Du Yang
The Changing Demand for Human Capital at China s New Stage of Development by Cai Fang and Du Yang Introduction The Chinese labor market has witnessed a great transition in recent years, as evidenced by
More informationProduct-Level Efficiency and Core Competence in Multi-Product Plants
Product-Level Efficiency and Core Competence in Multi-Product Plants Alvaro Garcia-Marin Universidad de Chile Nico Voigtländer UCLA and NBER First draft: December 2016 This draft: January 2017 Abstract
More informationTrade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia
WP/05/146 Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia Mary Amiti and Jozef Konings 2005 International Monetary Fund WP/05/146 IMF Working Paper Research Department
More informationProduct Choice and Market Competition: The Case of Multiproduct Electronic Plants in Taiwan
Product Choice and Market Competition: The Case of Multiproduct Electronic Plants in Taiwan Bee Yan Aw * Department of Economics, The Pennsylvania State University, University Park PA 16802, U.S.A. byr@psu.edu
More informationThe Impact of the Minimum Wage on the Destruction and Creation of Products *
The Impact of the Minimum Wage on the Destruction and Creation of Products * Roberto Alvarez University of Chile Lucas Navarro Alberto Hurtado University Work in progress First draft: May 2017 Abstract
More informationExporting and Plant-Level Efficiency Gains: It s in the Measure
Exporting and Plant-Level Efficiency Gains: It s in the Measure Alvaro Garcia-Marin UCLA Nico Voigtländer UCLA and NBER First draft: April 2013 This draft: October 2014 Abstract While there is strong evidence
More informationTechnological change, trade in intermediates and the joint impact on productivity
EFIGE IS A PROJECT DESIGNED TO HELP IDENTIFY THE INTERNAL POLICIES NEEDED TO IMPROVE EUROPE S EXTERNAL COMPETITIVENESS Esther Ann Bøler, Andreas Moxnes and Karen Helene Ulltveit-Moe Technological change,
More informationFirm-level Evidence on Productivity Differentials and. Turnover in Taiwanese Manufacturing. Bee Yan Aw The Pennsylvania State University
Firm-level Evidence on Productivity Differentials and Turnover in Taiwanese Manufacturing Bee Yan Aw The Pennsylvania State University Xiaomin Chen The World Bank Mark J. Roberts The Pennsylvania State
More informationMulti-product Firms and Product Turnover in the Developing World: Evidence from India* April Abstract
Multi-product Firms and Product Turnover in the Developing World: Evidence from India* Penny Goldberg Princeton University BREAD, NBER Amit Khandelwal Columbia Business School, BREAD Nina Pavcnik Dartmouth
More informationInnovation, Firm Dynamics, and International Trade
Federal Reserve Bank of Minneapolis Research Department Staff Report 444 April 2010 Innovation, Firm Dynamics, and International Trade Andrew Atkeson University of California, Los Angeles, Federal Reserve
More informationWorking Paper Research. Comparative advantage, multi-product firms and trade liberalisation : An empirical test. January 2012 No 219
Comparative advantage, multi-product firms and trade liberalisation : An empirical test Working Paper Research by Catherine Fuss and Linke Zhu January 2012 No 219 Editorial Director Jan Smets, Member of
More informationIS THERE A PRODUCER QUALITY WAGE PREMIUM SIMILAR TO
IS THERE A PRODUCER QUALITY WAGE PREMIUM SIMILAR TO THE EXPORTER WAGE PREMIUM?* Pedro J. Hernández Departamento de Fundamentos del Análisis Económico Facultad de Economía y Empresa. Universidad de Murcia
More informationBetween Varieties. 1 Although true in this instance, the equality of aggregate productivity between the trading countries is no longer a
The Impact of Trade: Between Varieties Changes in the Elasticity of Substitution In the spirit of Krugman ((1979),(1980)), I now examine the impact of trade on two economies of the kind previously described.
More informationMulti-Product Plants and Product Switching in Japan
Multi-Product Plants and Product Switching in Japan Andrew B. Bernard Tuck School of Business at Dartmouth, CEPR & NBER Toshihiro Okubo Keio University This Version: July 2013 Abstract This paper explores
More informationCEP Discussion Paper No 1137 March 2012
ISSN 2042-2695 CEP Discussion Paper No 1137 March 2012 Intermediaries in International Trade: Direct Versus Indirect Modes of Export Andrew B. Bernard, Marco Grazzi and Chiara Tomasi Abstract This paper
More informationTechnology adoption and production organisation: Firm level evidence from India
Technology adoption and production organisation: Firm level evidence from India Sourafel Girma and Sandra Lancheros 1 Nottingham University Business School Jubilee Campus, Wollaton Road Nottingham, NG8
More informationUNIVERSITY OF VIENNA
WORKING PAPERS Ines Buono Harald Fadinger Stefan Berger The Micro Dynamics of Exporting Evidence from French Firms December 2008 Working Paper No: 0901 DEPARTMENT OF ECONOMICS UNIVERSITY OF VIENNA All
More informationBLP applications: Nevo (2001) and Petrin(2002)
BLP applications: Nevo (2001) and Petrin(2002) February 16, 2009 1 Nevo 2001 (Econometrica): Measuring market power in the ready-to-eat cereal industry Main question: The ready-to-eat (RTE) cereal industry
More informationDoes Exporting Promote New Product Introduction?: An Empirical Analysis of Plant-Product Data on the Korean. Manufacturing Sector
Does Exporting Promote New Product Introduction?: An Empirical Analysis of Plant-Product Data on the Korean Manufacturing Sector January 11, 2010 Chin Hee Hahn * * Senior research fellow, Korea Development
More informationTrade, Competition and Productivity Growth in the food industry
Trade, Competition and Productivity Growth in the food industry Alessandro Olper 1, Lucia Pacca 2 and Daniele Curzi 3 University of Milan E-mails: alessandro.olper@unimi.it 1 ; lucia.pacca@unimi.it 2 ;
More informationDo exporting firms benefit from retail internationalization? Evidence from France
Do exporting firms benefit from retail internationalization? Evidence from France Angela Cheptea a, Charlotte Emlinger b, Karine Latouche c a UMR 1302 SMART, INRA-Rennes, France & IAW Tübingen, Germany
More informationThe Extensive Margin of Exporting Goods: A Firm-level Analysis
The Extensive Margin of Exporting Goods: A Firm-level Analysis Costas Arkolakis Yale University and NBER Marc-Andreas Muendler UC San Diego, CESifo and NBER November 23, 2008 Abstract We examine three-dimensional
More informationOpenness and Technological Innovation in East Asia: Have They Increased the Demand for Skills?
S P D I S C U S S I O N P A P E R NO. 0919 Openness and Technological Innovation in East Asia: Have They Increased the Demand for Skills? Rita K. Almeida October 2009 Openness and Technological Innovation
More informationExporters, Engineers, and Blue-Collar Workers
The World Bank Economic Review Advance Access published April 10, 2016 Exporters, Engineers, and Blue-Collar Workers Irene Brambilla, Daniel Lederman, and Guido Porto This article investigates differences
More informationEssays on Globalization and Economic Development
Essays on Globalization and Economic Development A DISSERTATION SUBMITTED TO THE FACULTY OF THE GRADUATE SCHOOL OF THE UNIVERSITY OF MINNESOTA BY Nan Xu IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
More informationTransportation Mode and Exporter Heterogeneity
Transportation Mode and Exporter Heterogeneity Ying Ge Huiwen Lai Chia-Hui Lu Susan Chun Zhu July 2014 Abstract Using the matched firm-trade data from China, in this paper we examine the effect of firm
More informationInternational Trade
14.581 International Trade Class notes on 5/13/2013 1 1 Explaining Trade Policy Gawande and Krishna (Handbook chapter, 2003) have a nice survey of this literature. If, by an overwhelming consensus among
More informationEXPORTING AND PRODUCTIVITY: A FIRM-LEVEL ANALYSIS OF THE TAIWAN ELECTRONICS INDUSTRY
340 The Developing Economies, XLI-3 (September 2003): 340 61 EXPORTING AND PRODUCTIVITY: A FIRM-LEVEL ANALYSIS OF THE TAIWAN ELECTRONICS INDUSTRY CHIH-HAI YANG Based on the panel data of Taiwanese electronics
More informationSDT 366. PRODUCT MIX CHANGES AND PERFORMANCE IN CHILEAN PLANTS Autores: Roberto Alvarez, Claudio Bravo-Ortega y Lucas Navarro
SDT 366 PRODUCT MIX CHANGES AND PERFORMANCE IN CHILEAN PLANTS Autores: Roberto Alvarez, Claudio Bravo-Ortega y Lucas Navarro Santiago, Octubre de 2012 Product Mix Changes and Performance in Chilean Plants
More informationEssays on Labor Markets and Globalization
Essays on Labor Markets and Globalization A DISSERTATION SUBMITTED TO THE FACULTY OF THE GRADUATE SCHOOL OF THE UNIVERSITY OF MINNESOTA BY Andrea Waddle IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
More informationLeverage and trade unionism in Indian industry: An empirical note
MPRA Munich Personal RePEc Archive Leverage and trade unionism in Indian industry: An empirical note Saibal Ghosh Reserve Bank of India July 2008 Online at https://mpra.ub.uni-muenchen.de/26400/ MPRA Paper
More informationProductivity and outbound FDI in software services: A reversalmarch of the8, HMY 2010model1 / 30
Productivity and outbound FDI in software services: A reversal of the HMY model Rudrani Bhattacharya Ila Patnaik Ajay Shah National Institute of Public Finance and Policy, New Delhi March 8, 2010 Productivity
More informationDOES TRADE OPENNESS FACILITATE ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM AZERBAIJAN
International Journal of Economics, Commerce and Management United Kingdom Vol. VI, Issue 2, February 2018 http://ijecm.co.uk/ ISSN 2348 0386 DOES TRADE OPENNESS FACILITATE ECONOMIC GROWTH: EMPIRICAL EVIDENCE
More informationHow to Combine High Sunk Costs of Exporting and Low Export Survival. Joakim Gullstrand and Maria Persson
IFN Working Paper No. 962, 2013 How to Combine High Sunk Costs of Exporting and Low Export Survival Joakim Gullstrand and Maria Persson Research Institute of Industrial Economics P.O. Box 55665 SE-102
More informationTrade and Firm Heterogeneity In A Quality-Ladder Model of Growth
In A Quality-Ladder Model of Growth Tetsugen Haruyama Kobe University Laixun Zhao Kobe University August 8 Abstract The present paper explores the effect of trade liberalization on the level of productivity
More informationDo Falling Iceberg Costs Explain Recent US Export Growth?
Do Falling Iceberg Costs Explain Recent US Export Growth? George Alessandria y Federal Reserve Bank of Philadelphia Horag Choi University of Auckland [Preliminary] August 2009 Abstract We study the rise
More informationTechnology-Skill Complementarity
Technology-Skill Complementarity Nancy L. Stokey University of Chicago October 16, 2015 Becker Conference Stokey (University of Chicago) TSC 10/2015 1 / 35 Introduction This paper studies a simple general
More informationIntermediaries in International Trade: direct versus indirect modes of export
: direct versus indirect modes of export Andrew B. Bernard Tuck School of Business at Dartmouth, CEPR & NBER Marco Grazzi LEM Scuola Superiore S.Anna Chiara Tomasi LEM Scuola Superiore S.Anna & Università
More informationIMPORTED CAPITAL INPUT, ABSORPTIVE CAPACITY, AND FIRM PERFORMANCE: EVIDENCE FROM FIRM-LEVEL DATA
IMPORTED CAPITAL INPUT, ABSORPTIVE CAPACITY, AND FIRM PERFORMANCE: EVIDENCE FROM FIRM-LEVEL DATA MAHMUT YASAR Importing capital inputs has been recognized as a critical channel for technology transfer
More informationOn-the-Job Search and Wage Dispersion: New Evidence from Time Use Data
On-the-Job Search and Wage Dispersion: New Evidence from Time Use Data Andreas Mueller 1 Stockholm University First Draft: May 15, 2009 This Draft: August 11, 2010 Abstract This paper provides new evidence
More informationImporting, exporting and productivity in Irish manufacturing
Importing, exporting and productivity in Irish manufacturing Fergal McCann 13 August 2009 Abstract The impact of international trade on firm productivity is tested by accounting for firms import as well
More informationWorking Paper Research. No 269. International competition and firm performance : Evidence from Belgium. October 2014
International competition and firm performance : Evidence from Belgium Working Paper Research by Jan De Loecker, Catherine Fuss and Johannes Van Biesebroeck October 2014 No 269 Editorial Director Jan Smets,
More informationInnovation and the Elasticity of Trade Volumes to Tariff Reductions
Innovation and the Elasticity of Trade Volumes to Tariff Reductions Loris Rubini Arizona State University Abstract I study the implications of endogenous productivity choices ( innovation ) on the effects
More informationMonetary Policy and Distribution
Monetary Policy and Distribution Stephen D. Williamson Department of Economics University of Iowa Iowa City, IA 52242 stephen-williamson@uiowa.edu http://www.biz.uiowa.edu/faculty/swilliamson February
More informationAStructuralModelof Establishment and Industry Evolution: Evidence from Chile
AStructuralModelof Establishment and Industry Evolution: Evidence from Chile MURAT ŞEKER Enterprise Analysis Unit World Bank First Draft: January 2007 This Version: December 2009 Abstract Many recent models
More informationTrade Liberalization, Technology and Skill Upgrading
Trade Liberalization, Technology and Skill Upgrading Evidence from Argentina Paula Bustos CRE-Universitat Pompeu Fabra August 2009 ntroduction During the last 25 years the skill premium has increased in
More informationThe Impact of Firm s R&D Strategy on Profit and Productivity
CESIS Electronic Working Paper Series Paper No. 156 The Impact of Firm s R&D Strategy on Profit and Productivity Börje Johansson* and Hans Lööf** (*CESIS and JIBS, **CESIS and Division of Economics, KTH)
More informationMarket integration and competition
Market integration and competition Jan De Loecker Princeton University and KU Leuven NBER and CEPR World Bank Poverty Summer University July 21, 2017 Talking points Short overview on nexus competition-trade-firm
More informationPollution Haven Effect through Input-Output Linkages
Pollution Haven Effect through Input-Output Linkages H. Ron Chan University of Manchester February 2, 2015 PRELIMINARY - PLEASE DO NOT CITE OR CIRCULATE. Abstract How does environmental regulation affect
More informationDynamic Olley-Pakes Productivity Decomposition with Entry and Exit
Dynamic Olley-Pakes Productivity Decomposition with Entry and Exit Marc J. Melitz Harvard University, NBER and CEPR Sašo Polanec University of Ljubljana June 15, 2012 Abstract In this paper, we propose
More informationTrade Reforms and Income Inequality in Colombia *
Trade Reforms and Income Inequality in Colombia * Prepared for the 2002 IMF Conference on Macroeconomic Policies and Poverty Reduction Washington, DC, March 14-15, 2002 Orazio Attanasio Pinelopi K. Goldberg
More informationTime varying effects of oil price shocks on euro area exports
Time varying effects of oil price shocks on euro area exports F. Venditti (Banca d Italia) and M. Riggi (Banca d Italia) Pavia, March 25-26 2014 Pavia, March Motivation The changing effect of oil price
More informationInnovation, Firm Dynamics, and International Trade
Innovation, Firm Dynamics, and International Trade Andrew Atkeson and Ariel Burstein November 2006 Abstract We present a simple general equilibrium model of the decisions of firms to innovate and to engage
More informationIrina Levina. Decentralization of decision-making at the firm: comparative analysis of firms in 7 European countries and Russia.
Irina Levina Institute for Industrial and Market Studies, National Research University Higher School of Economics Decentralization of decision-making at the firm: comparative analysis of firms in 7 European
More informationImplications for exporter premia and the gains from. trade
Heterogeneous firms or heterogeneous workers? Implications for exporter premia and the gains from trade Alfonso Irarrazabal, Norges Bank Andreas Moxnes, Dartmouth College and BI Norwegian Business School
More informationExtended Abstract: Inequality and trade in services in the UK
Extended Abstract: Inequality and trade in services in the UK Martina Magli July, 2017 The present study investigates the role of rise in services offshoring on UK local wages inequality for the period
More informationExporting and Plant-Level Efficiency Gains: It s in the Measure
Exporting and Plant-Level Efficiency Gains: It s in the Measure Alvaro Garcia-Marin Nico Voigtländer forthcoming in the Journal of Political Economy Abstract While there is strong evidence for productivity-driven
More informationMarket Size, Competition, and the Product Mix of Exporters
Market Size, Competition, and the Product Mix of Exporters Thierry Mayer Sciences-Po CEPII and CEPR Marc J. Melitz Harvard University NBER and CEPR Gianmarco I.P. Ottaviano London School of Economics Bocconi
More informationProduct Mix and Firm Productivity Responses to Trade Competition
Product Mix and Firm Productivity Responses to Trade Competition Thierry Mayer Sciences-Po, Banque de France CEPII and CEPR Marc J. Melitz Harvard University NBER and CEPR Gianmarco I.P. Ottaviano London
More informationWage Premiums for Exporters and Multinational Enterprises: Evidence from Japanese linked employer-employee data
RIETI Discussion Paper Series 15-E-106 Wage Premiums for Exporters and Multinational Enterprises: Evidence from Japanese linked employer-employee data TANAKA Ayumu RIETI The Research Institute of Economy,
More informationR&D Investment and Export Dynamics
R&D Investment and Export Dynamics Bee Yan Aw The Pennsylvania State University Mark J.Roberts The Pennsylvania State University and NBER September 11, 2008 Daniel Yi Xu New York University Abstract A
More informationWRITTEN PRELIMINARY Ph.D. EXAMINATION. Department of Applied Economics. University of Minnesota. June 16, 2014 MANAGERIAL, FINANCIAL, MARKETING
WRITTEN PRELIMINARY Ph.D. EXAMINATION Department of Applied Economics University of Minnesota June 16, 2014 MANAGERIAL, FINANCIAL, MARKETING AND PRODUCTION ECONOMICS FIELD Instructions: Write your code
More informationThe Effect of Exports on Labor Informality: Evidence from Argentina
The Effect of Exports on Labor Informality: Evidence from Argentina Romina Safojan Abstract This paper explores the causal impact of exports on the share of informal labor in the Argentinean manufacturing
More informationMonopolistic Competition and Optimum Product Selection
Monopolistic Competition and Optimum Product Selection By ANTONELLA NOCCO, GIANMARCO I.P. OTTAVIANO AND MATTEO SALTO Since the initial contribution by Melitz (23) monopolistically competitive models with
More informationLearning to Import from Your Peers: Online Appendix
Learning to Import from Your Peers: Online Appendix Márta Bisztray Institute of Economics, Hungarian Academy of Sciences Miklós Koren Central European University, Institute of Economics, Hungarian Academy
More informationJob Reallocation and Labour Mobility among Heterogeneous Firms in Norway
Job Reallocation and Labour Mobility among Heterogeneous Firms in Norway Dan Li Thesis for the Master of Philosophy in Environmental and Development Economics Department of Economics University of Oslo
More informationRevisiting the Relationship Between Competition, Patenting, and Innovation
Published as: Aghion, Philippe, Peter Howitt, and Susanne Prantl. 2013. Revisiting the Relationship Between Competition, Patenting, and Innovation. In Advances in Economics and Econometrics (Tenth World
More informationDIVERSE ORGANIZATIONS
DIVERSE ORGANIZATIONS AND THE COMPETITION FOR TALENT Jan Eeckhout 1,2 Roberto Pinheiro 1 1 University of Pennsylvania 2 UPF Barcelona Decentralization Conference Washington University Saint Louis April
More information